The Market Bull – March 4, 2019
While the major averages managed to recover some of their early losses they closed today in the red. Oddly what was expected to be positive news on the trade war with China turned into something of a spectacle after Trump and his trade representative Robert Lighthizer made a very public display of demonstrating that they were not on the same page. Simply the latest example of what is increasingly obvious, that the Trump Administration is exceedingly dysfunctional.
One of many economic reports delayed by the government shutdown was the Personal Income and Outlays for January from the BEA or Bureau of Economic Analysis. Personal Income advanced just .1% for the month while Personal Spending decreased .5%. This pushed the personal saving rate to 7.6%. This is another example of weakening economic data as the year came to a close, roiled by trade war, political scandal and widespread uncertainty, not a good combination for stocks and the economy.
The ISM or Institute of Supply Managers New York Report fell 2.3 points to 61.1 in February, despite a notable jump in employment. Price data slipped but remains quite high.
Construction Spending missed significantly in December falling .6% on broad based weakness. This series also marked a 3rd decline in the last 6-months as the effects of higher interest rates bite.
Standard and Poors 500 Index closed at: 2,792.81 down 10.88
NASDAQ finished the day: 7,577.57 down 17.79
Gold ended trading at: $1,287.70 down $11.50